This paper examines the role of the Ministry of Foreign Affairs (MoFA) in supporting greater use of the Local Currency Settlement Framework (LCSF), an international monetary cooperation initiated by Indonesia with Malaysia and Thailand in 2017 to reduce dependence on the U.S. Dollar (USD). Data from Bank Indonesia shows that 90% of Indonesia's international trade transactions still use USD, exp…
This paper examines the use of Information and Communication Technology (ICT) in supporting economic diplomacy at the Ministry of Foreign Affairs of the Republic of Indonesia (MOFA RI) as a continuation of the 4+1 foreign policy priorities. Although many digital tools have emerged over the past two decades to facilitate trade and business, economic diplomacy practice remains largely traditional…
This paper examines the potential of Digital Economy Agreements (DEA) as an instrument for Indonesia's economic diplomacy to enhance trade and collaboration in the digital economy. Indonesia's digital economy value is projected to surge by US$ 400 billion by 2030 through DEA, aligning with economic diplomacy objectives to spur economic growth, people's welfare, and national resilience. Countrie…
This policy brief proposes repositioning Indonesia's economic diplomacy as a system-enabling instrument to respond to emerging global sustainability trade measures, including tightening environmental standards and supply-chain requirements. The commodity sector faces a growing misalignment between domestic production systems and global market demands, risking competitiveness erosion and margina…
This paper proposes outbound food investment—acquiring equity stakes in overseas agricultural production and supply-chain infrastructure—as an essential complement to Indonesia's domestic food security strategies. Current import dependencies of 100% in wheat, 90% in soybeans, 80% in dairy, and 40% in beef leave the country acutely exposed to geopolitical supply disruptions that food estates…
A data-driven analytical tool can strengthen economic diplomacy in supporting national industrialization by identifying strategic international partners and investment opportunities. An integrated framework combining quantitative global trade analysis with qualitative country profiling can assess industrial inputs, domestic capabilities, business actors, geopolitical risks, and partnership pote…
Critical minerals have become strategic resources in the global transition to green technologies, while geopolitical tensions and fragmented supply chains create new challenges for mineral-producing countries. Indonesia can strengthen its critical minerals diplomacy by diversifying strategic partnerships, engaging BRICS and the New Development Bank, and promoting inclusive and sustainable miner…
Strategic ESG alignment can strengthen investment diversification and geopolitical positioning in the critical minerals sector. Aligning domestic ESG practices with international standards can improve market credibility, attract investment beyond traditional sources, and support sustainable mineral downstreaming. A phased approach to ESG compliance, supported by appropriate incentives and stron…
Development cooperation with the Caribbean can strengthen diplomatic influence, economic engagement, and long-term strategic partnerships. Current engagement remains fragmented and requires a more focused regional strategy based on trust, mutual respect, and shared development interests. A Caribbean-specific cooperation framework can align development programs with regional needs, improve polic…
Indonesia can integrate public-private partnerships (PPP) into its development assistance to strengthen economic diplomacy and diversify development financing. By mobilizing private-sector resources, PPP can support Indonesian exports, investment, and development cooperation while reducing dependence on public funding. Establishing a PPP platform can coordinate government and private-sector par…